💰 Welcome to Your Channel! Welcome to our channel where we delve into the intricacies of financial markets. Today, we focus on EUR/USD, dissecting its current price action to uncover strategic trading opportunities. Join us as we analyze key levels and market dynamics, aiming to refine our trading strategies and maximize potential gains.
📈 Anticipated Price Retracement In our previous EUR analysis, we projected a price retracement to mitigate inefficiencies, including Gaps and Fair Value Gaps (FVG). This forecast materialized, with a notable reaction at the FVG created post-Market Structure Shift (MSS).
📉 Expansion and Sell-Side Liquidity Subsequently, the price extended lower, targeting and absorbing the sell-side liquidity (SSL). Our analysis had delineated Optimal Trade Entry (OTE) levels, which the price action respected, exemplifying an optimal scenario.
🔄 Reaction to Fair Value Gap Presently, the price has retraced to the delineated FVG, exhibiting a significant reaction at the 50% (CE) level of the FVG. This movement also induced a Smart Money Technique (SMT) divergence with GBP/USD.
🧠 Understanding Smart Money Technique (SMT) You may inquire about SMT: in this context, SMT manifests when EUR registers a high, fails to achieve a higher high, and instead forms a lower high, whereas GBP/USD attains a higher high. This divergence signifies a bearish SMT, particularly when aligned with existing inefficiencies (FVG).
🔍 Outlook: Bearish or Bullish? To consider a bullish scenario, the price must invalidate the SMT. Should the SMT persist, our stance remains bearish until pivotal levels, such as the Previous Week Low (PWL), are achieved.
🙏 Thank you for joining us! Exploring EUR/USD today highlighted the importance of effective risk management in trading success. Prioritize research, implement robust strategies, and seek guidance for confident market navigation. Stay tuned for more insights on our channel. Here's to profitable trading and continuous learning!
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